I applied for a consolidation of all my loans because the FIDM loan counselor strongly advised me to, because I was falling behind on payments. The company they use is Direct Loan. DL approved my consolidation with a 6.25% rate. I thought this was a good deal until I received the first bill and first of all they pulled some capitalization on interest BS not to mention the actual % rate turned out to be 6.625%. To sum it all up my monthly payment is $175 and about $11 of that goes towards my principal. My balance on my loan is higher than it was when I originally applied to consolidate. They don’t tell you anything about the daily rate and also they don’t mention the 6.25% is when you have automatic payment set up through your bank account. IT’S A TOTAL SCAM AND IT’S GOTTA STOP!!!!!

Consumer Action Taken:

I’ve called and the customer service is horrible, they are RUDE, and don’t want to answer any questions. It’s very hard to get through to talk to anyone in the first place, probably because they have a gazillion people with this same complaint. I have thought about taking legal action.

Note:

The Myvesta Foundation sent a letter to the company at the address given or found and asked them to publicly respond to this complaint.